India’s Economic Resilience: GDP Growth Stays Strong at 6.8% Despite Q1 Slowdown

Despite a Q1 slowdown, S&P Global Market Intelligence affirms India's strong economic fundamentals and retains a 6.8% GDP growth forecast for FY 2024-25. Contributing factors include ongoing private consumption and investment, bolstered by government measures and stable financial conditions anticipated in the latter half of the fiscal year.

S&P Global Market Intelligence has highlighted India's stronger economic underpinnings despite a notable slowdown in the first quarter of 2024-25. The financial analytics firm has maintained its real GDP growth forecast at 6.8% for the entire fiscal year, despite the first quarter's modest 6.7% growth compared to the previous year's 8.2%.

The slowdown is attributed to a dip in government spending ahead of the Lok Sabha election and adverse weather conditions. However, robust private consumption and fixed investment indicate strong underlying business activity, justifying the stable economic outlook.

Projections remain optimistic with expected boosts from agricultural productivity, moderated inflation, and government social support initiatives. Financial conditions are also predicted to become more favourable, potentially leading the RBI to reduce the repo rate by December 2024. (ANI)

(With inputs from agencies.)